Pay-per-lead makes inroads as online ad pricing method

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Forget the long-running debate over click-through vs. cost-per-thousand pricing models. Advertisers are coming up with more specialized and creative ways to pay for advertising on the Internet.

The latest to surface is a cost-per-lead model. Recently insurance provider Garden State Life announced deals with several sites to pay $10 per lead generated. More specialized than simple click-through, cost-per-lead advertisers pay a site every time a valid user fills out and submits a request for information, usually done on a microsite within the page.

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Copyright March 1998, Crain Communications Inc.

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